RESIDENTIAL & COMMERCIALSOLAR REVIEW

Presented By:

Daniel M. Mullaney1st Light Energy

www.1stLightEnergy.com

Solar System: Most systems today are Grid tied, meaning no battery back up involved. The typical system includes the panels on the roof, which generate Direct Current from the sun’s rays. This D/C current is carried by a conduit to an inverter, which converts the D/C power to A/C for use in homes and business. From the inverter, the electricity flows into the service panel, with

excess power flowing back to the Grid.

Net metering is a program offered by a utility company for customers that install renewable energy systems to generate their own electricity that can be used to offset a portion of the electric energy provided by the utility. Any excess energy generated by the customer during the monthly billing cycle would be sold to the utility company and credited to the customer.

Unlike most home improvement projects, Solar PV installations are a “true investment”, as there is a rate of return based on the savings derived from a reduced utility bill, as well on any funds invested as part of a down-payment to reduce the electric rate.

It is estimated that for every 6 residential system installed, one job is created.

Some Obvious Questions about Solar

Does Solar Work in New England?New England’s climate can be tough at times, but there is plenty of sunlight to support solar energy. In fact, cooler Northeast temperatures make solar electric cells work more efficiently. Much more important than sunlight intensity are programs to make solar cost effective, which is why cool and cloudy Germany is actually the global leader in solar generated electricity. What about snow? Solar panels will not produce when covered in snow. However they have a tempered glass surface and dark color, so snow is quick to melt off them once the sun returns. This means that over the course of a year snow cover has an extremely small effect on overall production. Would a solar system increase the value of my home?Every home is different, but a study published by the Appraisal Institute estimates that for every utility-bill dollar saved due to an energy improvement, you gain $20 in property value. So a solar system that saves $1,000 per year in utility costs can increase your home’s value by $20,000. Also, the U.S. Department of Energy recently found that even in soft housing markets, a home with solar will sell in half the time as one without. Are solar panels fragile?Solar Electric systems are extremely rugged. They have no moving parts to wear out over time. Many solar installations have been producing energy for over thirty years, and today almost all solar panels come with a 25 year warranty. Today’s panels are designed to withstand lightning strikes, hail storms, and 100+ mile-an-hour wind.

Some Obvious Questions about Solar

Do solar panels need to be cleaned?Except in unusual circumstances where panels are in close proximity to a dusty or heavily polluted area, solar panels do not require cleaning. In New England there is enough rain to give solar panels all the washing they need. Does a roof need to face south?The ideal roof slopes towards the south, since southern exposure will maximize the efficiency of solar panels. But even if your roof is east or west facing, you can still get strong results. If there is a flat roof we can orient the panels to maximize efficiency. How much roof space is required for a solar electric system?For every kilowatt (kW) installed, a solar system takes up about 100 square feet, so an average solar system takes between 500 and 600 square feet.

What size solar system is needed?The size of a solar PV system depends on how much electricity is used. When we design an array, we start by looking at utility bills to determine the usage. From there we assess the specifics of a client’s site, including building orientation and roof shading to see how much energy it could generate. We then offer the client a detailed proposal – usually with two or three optimal system sizes - specific to their situation.

•Roof Age

•Shading

•Azimuth

•Roof tilt

Solar Power Qualifiers

SITE QUALIFICATION

Roof Condition and Age

No Cracking or Curling of Shingles, 10 Years or younger in age is ideal

Professional Mount

Roof Mounts

Panel Claw for Flat Roofs

Roof Mounts

SITE QUALIFICATION

Shading

SITE QUALIFICATION

Azimuth – Southern Orientation is most desirable Eastern Exposure typically acceptable Western Exposure is often possible Northern Orientation usually improbable

Sun’s Path

SITE QUALIFICATION

Roof Tilt –For maximum annual generation in Massachusetts,a solar array should be installed at approximatelya 30-45 degree angle to the horizon.

Example: 90° - 42° = 48° Tilt is the most ideal

NOT IMPORTANT

State Solar Programs

Solar PV works in states with viable incentive programs

Massachusetts – Commonwealth Solar InitiativeCalifornia – Production Based Incentive (PBI)New Jersey – SREC programPending - Connecticut, New York, Pennsylvania Arizona, Colorado, New Mexico, Oregon and Hawaii,,The ARRA – American Recovery and Reinvestment ActStay tuned – incentive programs are evolving.

Federal Renewable Energy Residential Tax CreditTax credits are available at 30% of the cost of the solar energy system, with no upper limit through 2016 (for existing homes, business & new construction). If a potential tax liability is small a customer can take the credit every year until it is gone until 2016. State Tax Credit A personal tax credit is available at 15% of the cost

of the solar energy system (after federal tax credits and grants) up to $1,000. The credit can be carried forward for 3 years.

State RebatesThe Massachusetts state rebates for solar PV and solar are available to customers served by all the major utilities in the state. This rebate is capped at $2,000 and is adjusted downward for larger systems (projects are eligible for rebates only if their total capacity is under 15kW) Solar Renewable Energy Credits (SRECs)SRECs are tradable certificates generated by the creation of solar electricity. A system will produce 1 SREC per year for every 1kW of PV installed. The average New England home uses about 6,000 kWh = 6 kW system = 6 SRECS

Incentives - Lots of Green $$ to Go Green

SREC Values = $285 minimum per SREC

SREC Values are guaranteed until 2020 by the Commonwealth of Mass.

SREC’s Trade on an auction platform regulated by the states.

Typical System: 6 SRECS x 285 = $1,710 per year in income

This income is either received by the customer or by the Solar Provider, depending upon the method of financing selected.

Solar is expensive at roughly $4,700/kilowatt (or $0.37/kWh)

Government credits, rebates and subsidized programs = under .10/kWh

On a typical solar project, the federal tax incentives pay for more than 1/3, local or state incentive programs pay for 1/3 and the last 1/3 comes from spreading out payments through PPA or Lease/Loan.

Incentives - Lots of Green $$ to Go Green (con’t)

CASH –(All incentives) Customer pays for the entire system from savingsResponsible for any maintenance, insurance, monitoring, inverter replacement, and removal and disposal of the system after useful

life.LOAN – (All incentives) Customer pays for system through 10Y debt Responsible for any maintenance, insurance, monitoring, inverter

replacement, and removal and disposal of the system after useful life.PREPAY w/SREC-(SREC’s only)–Customer pays for lease UPFRONT

NOT Responsible for any maintenance, insurance, monitoring, inverter

replacement, and removal and disposal of the system after useful life.

Receives SREC’sLEASE/P.P.A – (No Incentives) – Customer pays a low monthly fee, no

upfront. NOT Responsible for any maintenance, insurance, monitoring, inverter

replacement, and removal and disposal of the system after useful life. NO SREC

Choice of Funding Methods

FINANCIERS

1.) Clean Power Finance PPA (Pay for amount of energy PV system produces every month)

2.) NRG Solar Lease (fixed monthly payment)

3.) Admiral Bank – Conventional Loans and FHA Title 1 Funding

FINANCE PARTNERS

Free Installation 1st Light Energy will install the solar system for free with zero out of pocket cost.

Save on Monthly Electric BillsWith a Solar PPA- simply pay for solar power by the month—just like a utility bill—only lower.

Savings Grow Every YearSavings can grow over time as utility rates continue to increase. Historically, utility rates have increased over 4.5% every year. With a Solar PPA, a low rate will be locked in for 20 years.

Premium Service PackageWith a Solar PPA, we install a system for free and we maintain the equipment on the home.

System Monitoring- Constant monitoring of a system's performance with Locus®, a premier monitoring service. If problems do arise, a service crew will be notified and

dispatched to get the solar system back online.

Repair Service- 1st Light Energy owns the equipment and is responsible for repairs, such as inverter replacement.

Insurance Coverage-- All-inclusive system coverage protects against damage or theft.

Performance Guarantee- Built in guarantee that a system will produce as much electricity as was promised or homeowners gets a credit of shortfall of production.

Lease & Power Purchase Agreement (PPA)

Power Purchase Agreement (PPA)• PPA gives you a low ($0 or more) up front cost.• You’re locked in for 20 years to this agreement, which is transferable to

a new owner of the home should you sell the house.• They charge you a set electrical rate that is sometimes flat, and

sometimes calculated to rise over the term of your agreement. So instead of paying for coal fired electricity rates, you’re paying for PPA rates generated through your solar panels.

• The PPA company takes care of the maintenance and any needed repairs and monitors your system.

• You don’t get any tax benefits or State rebates or Solar Renewable Energy Credits (SREC’s)

• You usually have some kind of option to buy later or at the end of the agreement for a set price per watt.

• You need to have an good credit rating to qualify.• You’re always tied to the grid, so any residual electricity needs that your

solar panels don’t produce is covered by your utility.

Lease• Lease gives you a low ($0 or more) up front cost.• You’re locked in for 20 years to this agreement, which is transferable to

a new owner of the home should you sell the house.• Unlike a PPA, you do NOT pay for any power that your solar panels

generate. Instead, you pay a lease payment plus any extra power you need to buy from your electric company. So, solar panel power is technically free, but you have a set lease payment that is fixed or may rise 3 to 4% a year. That’s typically less than the 5% rate increases by your electric company.

• The lease company takes care of the maintenance and any needed repairs and monitors your system.

• You don’t get any tax benefits or State rebates or Solar Renewable Energy Credits (SREC’s)

• You usually have some kind of option to buy later or at the end of the agreement for a set price per watt.

• You need to have an good credit rating to qualify.• You’re always tied to the grid, so any residual electricity needs that your

solar panels don’t produce is covered by your utility.

Information needed for enrollment

• Credit Rating Score of 700 or greater

• Updated Utility Bill

• Site Survey

• High Speed Internet Connection

High Speed Internet Connection

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Pre solar usagePost solar usage2Pre solar costPost Solar cost

Evan Shu Case scenario

• Reduced need of electricity from National Grid by 56%.

• Reduced annual energy cost by 18% from $1550 a year down to $1250!

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$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Pre SolarPost Solar

With a locked in rate of $0.096 and 55% of energy coming from Solar Power

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Pre Solar UsagePost Solar Usage2Pre Solar CostPost Solar Cost2

Customer Kevin Case scenario

• Reduced need of electricity from NSTAR by 100%

• Reduced annual energy costs by 51% from $1200 a year down to $580 a year!

1 3 5 7 9 11 13 15 17 19$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Pre SolarPost Solar

With a locked in rate of $0.087 and 100% of energy coming from Solar Power

dmullaney@1stlightenergy.com1 (508)395-9380

www.1stlightenergy.com